Ontario Upholds U.S. Alcohol Ban at LCBO, Finance Minister Confirms

Ontario’s Finance Minister, Peter Bethlenfalvy, has confirmed the province’s commitment to maintaining its ban on U.S. alcohol sales at the Liquor Control Board of Ontario (LCBO). This decision comes amid ongoing trade tensions with the United States, particularly concerning tariffs imposed by the Trump administration.

Continued Ban on U.S. Alcohol in Ontario

In a recent interview with El-Balad, Bethlenfalvy emphasized the government’s stance on the alcohol ban, which has been in effect since March 2025. He noted that the removal of U.S. tariffs is a prerequisite for lifting the ban.

• Tariff Condition: Full removal of tariffs is the only condition for ending the U.S. alcohol ban.
• Duration of Ban: The ban has been active since March 2025.
• Funds Accumulated: Approximately $80 million worth of U.S. alcohol is currently held in LCBO warehouses.

Impact on Trade Relations

American officials, including U.S. Ambassador Pete Hoekstra, have highlighted the trade ban as a significant issue in diplomatic relations. They contend that it complicates trade negotiations and labels Canada as “mean and nasty” to engage with due to these restrictions.

Bethlenfalvy stated the importance of striking a balanced trade agreement. He pointed to additional tariffs imposed by the U.S. on Canadian products such as steel, aluminum, and lumber as factors aggravating trade relations.

Local Benefits Amidst Trade Tensions

Despite criticism, the LCBO ban has benefited local Ontario producers. The finance minister reported significant growth in Ontario-made products:

• VQA Ontario Wines: 79% growth
• Craft Beer: 33% growth across all types

Premier Doug Ford echoed this sentiment, praising Ontario’s wine production and its potential for growth.

Future Trade Negotiations

Looking ahead, Bethlenfalvy noted that the Ontario government will closely monitor the upcoming renegotiations of the Canada-U.S.-Mexico Agreement (CUSMA), expected to commence in 2026. The goal is to secure a trade deal that is mutually beneficial for both Canada and the United States.

Support for Affected Industries

Ontario continues to support sectors impacted by tariffs through its $5-billion Protect Ontario Fund. However, there are concerns regarding the slow rollout of aid, prompting calls for more rapid assistance for unemployed individuals in 2026.

Additionally, the province recently provided a $100 million loan to Algoma Steel, part of a larger $500 million financing package to maintain operations amidst financial challenges.

While Ontario grapples with trade difficulties and economic pressures, Finance Minister Bethlenfalvy asserts a commitment to long-term solutions. He promises to remain supportive of workers and industries affected by current economic conditions, as Ontario navigates its path forward.